WSJ: Banks Not Lending To Each Other:

Discussion in 'Wall St. News' started by capmac, Sep 17, 2008.

  1. capmac

    capmac

    SEPTEMBER 17, 2008

    Lending Among Banks Freezes

    Banks abruptly stopped lending to each other or charged exorbitantly high rates Tuesday, threatening to spread the troubles of American International Group Inc. and Lehman Brothers Holdings Inc. to a broad range of financial institutions and the global economy.

    The breakdown came despite efforts by central bankers to keep money flowing. Central banks in the U.S., Europe and Japan pumped tens of billions of dollars each into the banking system. The Federal Reserve, while declining to lower its benchmark interest rate at a regular meeting Tuesday, said it will "act as needed" to combat ills including tight credit and the ...

    http://online.wsj.com/article/SB122156888040242963.html?mod=todays_us_page_one
     
  2. this is why we are tanking so much. the fear has come to fruition.